Get ready to offer collateral
If you don’t have family or friends willing to lend you money, or you prefer to keep your finances and personal life separate, you can turn to government-backed loans, says Brooks. “Small business loans are one the most popular loans which new business owners usually opt for when starting their business. They are government loans that small businesses can get from the private sector. The loan system indicates that the business would have to pledge its personal assets as collateral for the loan to be granted.” Make note of that last part: you can’t hide behind an LLC with one of these and claim your business has nothing to hand over if you fail to pay the loan. Your personal assets could be at stake.